Remaining Debt Free

Becoming completely free of debt is an impossible mission for most people. With credit cards and loans more readily available in the current climate, its easy to use the banks money to pay for things than our own, even if it means accruing interest and charges and inevitably end up paying more for our purchases, we still favour the plastic over cash. Maybe we feel its safer to carry less cash or maybe we just don’t like to see our own cash depleting, either way, it’s become a way of life. We have become so reliant on credit cards, mortgages and loan repayments, borrowing money is considered as a way of surviving. But if in some ways you manage to get out of debt and stay out of debt, then consider yourself to be in the minority group. Having a fresh start and staying out of debt are becoming most peoples priority challenge in life.

Avoiding bad debt habits
To become completely free of debt or keeping debt at the minimum level takes a smart budgeting and determination. While debt is becoming a popular problem to many people in the UK, there are free debt help solutions offered to individuals who want to get out of debt fast. In today’s current climate there are approximately 300 people per day who go insolvent and there are more people looking for debt help than ever before.

High interest credit cards
Statistics from Credit Action show us that the average person owes approximately £30,440 (including mortgages). Credit cards are responsible for a big portion of this. The high interest and charges make it very difficult for people paying the minimums to get out of debt. Two things to remember with credit cards, always make more than the minimum payment and never go beyond the limit.

10 ways to start saving
Some think saving while in debt is virtually impossible. Here are a few tips to get you on your way.

1. Consider installing a water meter
A water meter can help you monitor the cost of your water, especially if you have a big home with few occupants.

2. Reduce your home phone bills
There was a time when BT was the only choice for a home phone but nowadays there is far more selection available which could better suit you needs. Packages are available from most lenders that can incorporate your telephone, television and broadband internet access in one by using your existing BT line.

3. Consider a pay-as-you go tariff
If you hand over £50 a month to your mobile phone company, that's £600 a year – or around £1,000 of your gross salary. If you are on contract and absolutely need a mobile phone, consider moving onto a ‘pay as you go’ tariff. These are available from as little as £10 per month.

4. Shop at a local market
Cheaper, healthier for less – Markets are slowing becoming the choice of many for their groceries. Lower overheads should mean lower prices. A packet of strawberries in Tesco will set you back £2.49 whereas a market would cost you just £1.

5. Consider buying own brand goods
Supermarkets provide their own range of lower priced goods which are usually just as good as the leading brands. You can buy a tin of Asda own-brand spaghetti for 18p and a loaf bread at Asda, Tesco or Sainsbury's for 19p. Enough said.

6. Don't buy designer labels
Celebrities are given expensive clothes to wear by big brands to try and encourage the public to buy their products. Don’t be tempted. Ask yourself, can I justify paying over the odds for a designer product when I could pick up something that looks relatively similar for a fraction of the cost? Can you honestly say you can tell the difference between a £400 designer bag and a £9.99 one from the market?

7. Do DIY
You can save a packet by doing your own DIY. Look into doing a course at your local college for around £100. You could improve your skills to enable you to tackle most household repairs.

8. Ask yourself: do I really need this?
Imagine the scenario. It's lunchtime and you've got an hour to kill. You find yourself in a department store and there's a sale on. You pick up a beautifully packaged selection of barbecue tools and associated garden paraphernalia. And it's half price. Now, stop! Ask yourself: Do I really need this? Exactly. Now, put it down and walk away.

9. Give up smoking
As well as serious health implications, your 20-a-day habit is costing you nearly £2,000 a year. Time to give up.

10. Will Power
Overall, the only thing that is going to get you on the road to a debt free life is will power. For some it’s more difficult than others. Make it easy on yourself. Cut up any unused credit cards or put them away in a safe place where you won’t see them. Keeping them in your wallet will be difficult to resist the temptation to spend.